For several years, telecommunications giant Nokia has been a leader in the mobile phone industry. Nokia might be starting to feel the effects of iOS- and Android-powered smartphones, however, as the Finland-based company has cut 4000 jobs due to increased competition. As part of the reduction, Nokia has announced that it will be moving certain manufacturing lines that it operated in Hungary, Mexico, and Finland to Asia…

The move is likely related to much cheaper labor prices in Asia, but will also bring the company’s manufacturing plants closer to its primary consumers. Nokia will begin reducing its staff members gradually, culminating in 2012. The company vows to offer a support program, including financial aid, to all affected employees.

“Working closely with our suppliers, we believe that we will be able to introduce innovations to market faster and ultimately be more competitive,” said Nokia executive Niklas Savander in a statement. “We understand that the planned changes are difficult for our employees and we are committed to supporting our staff and local communities during the transition.”